Blockchain technology has gained traction in various aspects of the global economy, from finance to supply chain, to education, to healthcare and more. Thanks to its features, more companies are leveraging it to provide excellent services. The Linux Foundation launches an insurance platform built on a blockchain.
Linux Foundation introduces blockchain-based insurance platform
Linux Foundation, the nonprofit technology consortium that supports the Linux operating system, has partnered with the American Association of Insurance Services to launch a blockchain-based platform for the insurance industry.
According to the Linux Foundation’s press release, they launched the Open Insurance Data Link (OpenIDL) platform yesterday. The platform is expected to help reduce insurance reporting costs and put in place a standardized insurance data repository using blockchain technology.
“OpenIDL brings together some of the world’s largest insurance companies, including The Hanover and Selective Insurance Group, along with technology and service providers Chainyard, KatRisk and MOBI to advance a common distributed ledger platform for sharing information and business processes across the insurance ecosystem,” the release added.
The OpenIDL network will get be particularly useful for regulatory reporting in the property and casualty insurance industry. The platform leverages blockchain technology features such as immutability and transparency to ensure trust among participants. It will also seek to convince regulators and other insurance industry participants that data reporting is accurate and complete.
The platform was initially built with guidance from the American Association of Insurance Services (AAIS), a leading insurance advisory organization and statistical reporting agent. AAIS CEO Ed Kelly stated that “From the very beginning, we recognized the enormous transformative potential for OpenIDL and distributed ledger technology. We are happy to work with the Linux Foundation to help affect meaningful, positive change for the insurance ecosystem.”
Blockchain technology revolutionizes data sharing
The OpenIDL platform is working as part of the Linux Foundation’s open governance network model. The platform’s network is built on the nodes that form the infrastructure of blockchain. Blockchain technology provides an industry utility platform that makes it easy to record transactions and automate business processes. The new platform ensures that these nodes are run by several organizations connected by a shared distributed ledger.